The US dollar is reasserting itself. What’s next? The team at BNP Paribas sees big levels.
Here is their view, courtesy of eFXnews:
BNP Paribas has made some adjustments to its G10 FX forecasts in tandem with its economics team’s quarterly forecast revision process.
“The most significant change to our economic forecasts this quarter is that we have added a third rate hike to our Federal Reserve profile. Our economists now anticipate Fed hikes in May, September and December of 2017, followed by four rate hikes in 2018,†BNPP argues.
“The changes this quarter are modest and mainly reflect the magnitude rather than direction of the moves we expect, as markets seem likely once again to discover the limits of policy divergence as 2017 progresses.
Our forecasts imply USDJPY rising to 128 and EURUSD falling to 1.00 by the end of 2017,†BNPP projects.
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